Hertz's Leadership Restructuring and Strategic Rebuilding: How Mike Moore's COO Promotion Signals Operational Turnaround Potential

Hertz Global Holdings' recent promotion of Mike Moore to Chief Operating Officer (COO) marks a pivotal moment in the company's strategic rebuilding efforts. With a 45% reduction in net vehicle depreciation and a 5% quarter-over-quarter decline in direct operating expenses already reported in Q1 2025, the rental car giant is demonstrating tangible progress, as noted in an FTN News article. Moore's appointment, announced in July 2025, underscores Hertz's commitment to disciplined execution and profitability restoration, particularly as the company navigates liquidity constraints reflected in its current ratio of 0.85, according to an Investing.com report.

A Leadership Shift with Operational Expertise

Mike Moore's career trajectory-spanning leadership roles at Delta Air Lines, Northwest Airlines, and Virgin Galactic-positions him uniquely to address Hertz's fleet challenges. His prior experience in optimizing large-scale vehicle operations and integrating advanced maintenance technologies aligns with Hertz's "Back-to-Basics" transformation plan, as described in a Hertz press release. As COO, Moore now oversees fleet integration, safety, customer service, and technical operations, consolidating responsibilities that were previously fragmented across departments. This restructuring aims to streamline decision-making and accelerate the implementation of cost-saving measures.

According to Investing.com, Moore's promotion is part of a broader leadership reshuffling designed to strengthen Hertz's operational performance. His focus on fleet optimization has already yielded results: over 70% of the U.S. rental fleet is now less than a year old, achieved through strategic acquisitions at pre-tariff pricing and accelerated rotation of older vehicles, as noted in a BeyondSPX piece. This approach has driven a significant reduction in depreciation per unit (DPU), with Q2 2025 DPU projected to fall below $300-a figure exceeding Hertz's internal targets (BeyondSPX).

Strategic Initiatives Driving Efficiency Gains

Hertz's operational efficiency initiatives under Moore's leadership extend beyond fleet management. The company has partnered with UVeye to deploy AI-driven vehicle maintenance systems, enhancing diagnostic accuracy and reducing labor costs, as announced in the Hertz–UVeye release. Concurrently, cost discipline has been prioritized through an 8% reduction in fleet size and a 12% decline in SG&A expenses in Q1 2025, per a Hertz quarterly release. These measures reflect a disciplined approach to aligning resources with demand, particularly in a macroeconomic environment marked by inflationary pressures and shifting consumer behavior.

Financially, Hertz's efforts are beginning to bear fruit. Record retail vehicle sales in Q1 2025 contributed to improved profit margins, while the company projects a path to break-even Adjusted Corporate EBITDA by Q3 2025 and positive free cash flow by Q4 2025 (Hertz quarterly release). These milestones, if achieved, would signal a critical inflection point for a company that has historically struggled with profitability.

Risks and the Road Ahead

While Hertz's progress is notable, challenges remain. The company's liquidity position-exacerbated by its current ratio-requires continued cost control and cash flow generation. Additionally, the success of Moore's initiatives hinges on maintaining momentum in fleet optimization and customer service improvements. As noted by BeyondSPX, Hertz's ability to sustain its "Back-to-Basics" strategy will depend on its capacity to balance short-term cost-cutting with long-term investments in technology and brand reputation.

For investors, Moore's promotion represents more than a leadership change-it is a signal of Hertz's renewed focus on operational rigor. With a clear roadmap to profitability and a leadership team now aligned around execution, the company is positioning itself to reclaim its market position in the competitive rental car industry.